Stagwell (NASDAQ:STGW) Raised to Hold at Zacks Research

Key Points

• Stagwell was upgraded by Zacks Research from a "strong sell" rating to a "hold" rating, reflecting a shift in analysts' perspectives on the stock.
• The stock has seen various ratings from different analysts, with three ratings as "Buy" and three as "Hold," leading to an average consensus rating of "Moderate Buy" with a price target of $8.17.
• Stagwell reported a Q2 earnings per share of $0.17, which was below the consensus estimate, despite achieving a revenue of $706.82 million, exceeding expectations.

Stagwell (NASDAQ:STGW - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Monday,Zacks.com reports.

Other analysts have also issued research reports about the stock. Needham & Company LLC reaffirmed a "buy" rating and set a $6.36 price objective on shares of Stagwell in a report on Tuesday, July 22nd. Morgan Stanley decreased their price target on shares of Stagwell from $8.00 to $7.00 and set an "equal weight" rating on the stock in a research note on Friday, August 1st. Wall Street Zen cut shares of Stagwell from a "buy" rating to a "hold" rating in a research note on Friday, August 22nd. Benchmark cut shares of Stagwell from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 9th. Finally, Rosenblatt Securities reissued a "buy" rating and set a $10.00 price target on shares of Stagwell in a research note on Monday, July 28th. Three investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $8.17.

Stagwell Price Performance

NASDAQ:STGW traded up $0.05 during mid-day trading on Monday, hitting $5.57. The company's stock had a trading volume of 864,087 shares, compared to its average volume of 954,764. The company has a market capitalization of $1.44 billion, a price-to-earnings ratio of 11.85 and a beta of 1.47. The stock has a fifty day moving average of $5.26 and a 200-day moving average of $5.34. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 1.90. Stagwell has a fifty-two week low of $4.03 and a fifty-two week high of $8.18.

Stagwell (NASDAQ:STGW - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.19 by ($0.02). The firm had revenue of $706.82 million for the quarter, compared to analyst estimates of $696.03 million. Stagwell had a positive return on equity of 14.54% and a negative net margin of 0.06%.The business's quarterly revenue was up 5.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.14 EPS. Stagwell has set its FY 2025 guidance at 0.750-0.880 EPS. As a group, equities analysts forecast that Stagwell will post 0.59 EPS for the current fiscal year.

Institutional Investors Weigh In On Stagwell

A number of hedge funds and other institutional investors have recently bought and sold shares of STGW. Vanguard Group Inc. increased its position in shares of Stagwell by 2.8% during the 1st quarter. Vanguard Group Inc. now owns 5,548,288 shares of the company's stock worth $33,567,000 after purchasing an additional 149,020 shares during the last quarter. Boston Partners increased its position in shares of Stagwell by 40.9% during the 2nd quarter. Boston Partners now owns 3,273,852 shares of the company's stock worth $15,515,000 after purchasing an additional 950,913 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Stagwell by 23.6% during the 2nd quarter. Geode Capital Management LLC now owns 2,852,617 shares of the company's stock worth $12,838,000 after purchasing an additional 544,464 shares during the last quarter. ABLE Financial Group LLC acquired a new position in shares of Stagwell during the 2nd quarter worth approximately $10,001,000. Finally, Penn Capital Management Company LLC increased its position in shares of Stagwell by 24.8% during the 1st quarter. Penn Capital Management Company LLC now owns 2,084,525 shares of the company's stock worth $12,646,000 after purchasing an additional 413,597 shares during the last quarter. Institutional investors and hedge funds own 35.61% of the company's stock.

Stagwell Company Profile

Stagwell Inc provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement.